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Intel shares jumped 8% in extended trading on Thursday after the chipmaker beat earnings expectations in the third quarter and realigned revenue growth.
Here are the key figures:
- Revenue: Excluding certain items, $ 1.42 per share, versus $ 1.24 per share, as expected by analysts, according to Refinitive.
- Revenue: $ 1
Revenue increased slightly on an annual basis in the quarter ended September 28, according to a statement.
The top business unit, Client Computing Group, which sells processors for desktops, laptops and two-in-one devices, generated $ 9.71 billion in revenue, beating its average estimate of 9.59 billions of analysts polled by FactSet, even down 5% from a year earlier. The company pointed to lower platform volume in the segment.
The second largest business, Data Center Group, which focuses on server chips, delivered $ 6.38 billion in sales, over $ 5.62 billion in FactSet consensus estimates. Intel said the slider of the segment returned to growth.
The Internet of Things Group, which manufactures data processing products for industries and embedded systems, had revenues of $ 1.23 billion. Analysts polled by FactSet had projected $ 1.12 billion in revenue from that segment.
Both Gartner and IDC said that PC shipments increased in the third quarter. Meanwhile, spending from large data center companies, such as Amazon and Microsoft, began bouncing back in the period, both of which could have boosted Intel's sales, Matt Bryson of Wedbush Securities, which equates to a sell-on Intel stock, told clients in a note this week.
But Intel is dealing with problems like cutting in shipments with 14-nanometer pieces, and the company has lowered its prices as it continues to compete with AMD, Bryson wrote.  "From a medium to longer perspective, we believe INTC's continued mise-bidding, whether shorting in some Xeon customers, or PC OEMs / ODMs, should give these clients another reason to look more closely at AMD," wrote he.
Intel announced second generation Optane DC Persistent Memory in the third quarter, saying that Apple had agreed to buy the majority of Intel's smartphone modem business for a deal valued at $ 1 billion.
In terms of guidance, Intel said it is looking for $ 1.24 in earnings per share, excluding certain items, of $ 19.2 billion in sales in the fourth quarter, which would amount to an annual revenue gain of around 2.9%. Analysts polled by Refinitive had projected $ 1.21 in earnings per share, excluding certain items, of $ 18.82 billion in the quarter.
Leaders will discuss the results with analysts at a conference call at Eastern time.
Intel has increased 11% since the beginning of the year.
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